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Financial Information for Decision Making

   

Added on  2021-05-30

15 Pages3386 Words127 Views
Running head: FINANCIAL INFORMATION FOR DECISION MAKINGFinancial information for decision makingName of the studentName of the universityStudent IDAuthor note

1FINANCIAL INFORMATION FOR DECISION MAKING1.Executive summaryThe main objective of the report is to analyse the performance of Bega Cheese Limitedthrough various measures like profitability ratios, efficiency ratios, liquidity ratios andgearing ratio. For the purpose of analysis this report will take into consideration theperformance of the company over the years from 2014 to 2016 it has been identified from thereport that though the profitability ratio of the company significantly deteriorated over theyears from 2014 to 2015, the company was able to improve the ratio during the year 2016.The liquidity ratio of the company represents that the company is efficient in paying its shortterm dues with the current assets of the company. Furthermore the gearing ratio of thecompany is representing that the debt of the company is lower as compared to the assetproportion. Further it is identified that the company is efficient in generating revenue from itsasset, converting its receivable into cash and selling or replacing it inventory over the specificperiod of time. Therefore it can be stated that the financial health of the company is good.

2FINANCIAL INFORMATION FOR DECISION MAKINGTable of Contents1.Executive summary.............................................................................................................12.Introduction.........................................................................................................................33.Ratio calculation and interpretation....................................................................................44.Conclusion..........................................................................................................................9References................................................................................................................................11Appendix..................................................................................................................................13

3FINANCIAL INFORMATION FOR DECISION MAKING2.Introduction Bega Cheese is the Australian Dairy company that is based in Bega of New SouthWales of Australia. The company was initially established as the agricultural cooperativecompany in the year 1989 that was owned by the dairy suppliers and it became the publiccompany during the year 2011. Major business of the company includes core dairy productslike powdered milk and cream cheese and various nutritional products produced under thebrand name of Bega Bionutrients like Lactoferrin and milk protein concentrate. Throughcollected resources from more than 100 dairy firms of Bega Valley the company is able todistribute and produce cheese products that are of high quality and distribute it to more than50 countries all over the world. Driving the challenges, embracing the challenges andbuilding towards future is the mission statement of the company (Bega Cheese 2018).Out of the total revenue of the company approximately 27% of the revenues aregenerated from these sources. The company has 25% holding for Capital Chilled Foods alongwith the multinational company Lion that has the controlling interest. Further, approximatelyhalf of the revenue of the company comes from the products related to processed cheese andretail cheese. The company holds near about 15.70% of the entire Australian cheese market.The company exports its product along with other retail business like Royal Victoria,Melbourne, Dairymont and Tatura (Bega Cheese 2018). The company is included in the cheese manufacturing industry and for last 5 years theindustry is struggling due to varying demand in the export market. However, the positivetrend is supported by the increasing interest of the investors in the cheese manufacturingindustry. The major competitors of Bega Cheese Limited are Fonterra Co-op Group,Devondale Murray Goulburn, Warrnambool Cheese and Butter and Lion Nathan NationalFoods (Bega Cheese 2018).

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